CGD in the News

Banning refugees from having jobs hurts, not helps, local workers (Apolitical)

October 23, 2018

By Apolitical 

From the article:

Millions of refugees and asylum seekers are denied the right to work because governments are worried about their potential to displace locals from jobs and drive down wages.

But trying to ban refugees from working can magnify harmful effects by concentrating their labour in low-skilled, informal work, creating greater competition. Allowing them unrestricted access to the labour market can actually reduce the impact on wages and create fiscal benefits for government.

That’s according to a new report from the Center for Global Development and the Tent Partnership for Refugees, which argues that opening up labour markets can be a winning proposition — for both refugees and locals.

There is some evidence of negative effects on wages and employment levels from refugee flows. These effects typically occur, the report says, “when there is an especially large concentration of refugees in certain geographies and industries”.

But those conditions are often inadvertently created by governments, according to Cindy Huang, co-director of the Center for Global Development’s migration program and one of the reports co-authors. Without the right to work, refugees’ only options are in the informal economy, characterised by low-skill and insecure jobs, regardless of their qualifications and experience.

Read the full article here.